ICE canola correcting lower

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker at midday Tuesday, seeing a profit-taking correction after running into resistance.

The November contract retested its 200-day moving average for the third session in a row overnight, but selling came forward at the highs. Losses in crude oil spilled into the vegetable oil markets, contributing to the weakness in canola.

Generally warm and dry weather conditions across Western Canada also weighed on prices, as the canola harvest is in its final stages.

Export data for August showed Canada shipped 718,000 tonnes of canola to China in August – about three times what moved to the country during the first month of the 2023/24 marketing year. An analyst estimated that there were at least three million tonnes of canola sales to China already on the books for 2024/25, with total business likely topping five million tonnes if there are no surprises from a political standpoint.

An estimated 51,200 canola contracts traded as of 10:42 CDT.

Prices in Canadian dollars per metric tonne at 10:42 CDT:

Canola            Nov   619.00    dn  8.50

Jan   630.40    dn  9.40

Mar   642.10    dn  8.60

May   650.00    dn  7.80